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A company seeks to maintain an internal growth rate of 1 3 % , with a retention ratio ( also called a plowback ratio )

A company seeks to maintain an internal growth rate of 13%, with a retention ratio (also called a
plowback ratio) of 60%. If the company's total assets were valued at $139 million at the end of
the year, what was its addition to retained earnings this year (rounded to the nearest $100,000)?
A. $16.0 million
B. $16.3 million
C. $24.0 million
D. $26.6 million
E. $27.1 million
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